Director's Message
October 30, 2009

To:       Employees and Partners of Oregon Housing and Community Services

From:   Victor Merced

Re:       Director’s Bulletin

• HUD approves use of residual receipts to preserve
  state-financed Section 8
  
  
• OHCS still analyzing the administration’s new housing
  bond program proposal
  
  
• Taking action on the problem of homelessness –
  it takes a village
  
  
• Supporting local efforts to end homelessness
  
  
• Housing Council sets priorities and considers applications
  for funding
  
  
• Staff departure

HUD approves use of residual receipts to preserve state-financed
Section 8
Last week, U.S. Housing and Urban Development approved the use of up to $585,000 in residual receipts to help finance the preservation of Stewart Terrace, an OHCS project in Sherwood. The approval allows residual receipts to fund rehabilitation costs.

Residual receipts are the dollars remaining after a project meets its obligations to funders, pays the costs of operations, and sets aside required replacement reserves.

If this policy were to apply to all OHCS-funded Section 8 projects, it would mean that an additional $9 million would be available to finance preservation, primarily in the Portland metropolitan area.

This would be particularly good news for rural Oregon, because it would allow OHCS resources to go further to address the impending loss of thousands of federally subsidized units across the state.

In addition, Congressman Barney Frank, chair of the House Financial Services Committee, and Oregon Senators Ron Wyden and Jeff Merkley have introduced similar federal legislation. We continue to work with them to ensure that any successful legislation gives us maximum flexibility to use residual receipts to preserve all Section 8 projects in collaboration with our nonprofit and for-profit partners.

OHCS still analyzing the administration’s new housing bond proposal
The administration’s proposal is a wonderful opportunity to restart our first-time homebuyer program and with challenges for its execution. Oregon Housing and Community Services has submitted a non-binding request for Fannie Mae and Freddie Mac to purchase up to $250 million in single-family bonds and $50 million in multifamily bonds. We will continue to evaluate the potential costs and benefits of participating in the program.

Watch future director’s messages for updates on our decision making.

Learn more here about the proposal.

Taking action on the problem of homelessness - it takes a village
During the last week, two communities held events to connect people experiencing homelessness with services. In Pendleton, more than 200 people visited the local hospital, seeking services and information. In Corvallis, 125 came to the First Christian Church for haircuts, eyeglasses, dental care and help getting identification. These events are a wonderful opportunity to hear first hand the stories of people experiencing homelessness, and help them on their way to finding a home. They also demonstrate that a community-wide problem requires a community-wide response.

A recent editorial in the Corvallis Gazette Times said it well:

“… one of the most encouraging aspects of Project Homeless Connect was the fact that it attracted about two dozen agencies, organizations and businesses, all starting to understand that not one of them alone has the resources to banish homelessness in our community.

“Alone, we can’t do it. Together, we have a shot.”

Supporting local efforts to end homelessness
Communities in the process of writing or implementing a local plan to end homelessness can take advantage of a great learning opportunity on November 19 and 20 in Corvallis: Oregon Forum on Ending Homelessness. Click here to see the agenda and to register for this free event.

Many thanks to the event sponsors: U.S. Census Bureau; U.S. Interagency Council on Homelessness; Oregon’s Ending Homelessness Advisory Council; Neighborhood Partnerships; and, U.S. Department of Housing and Urban Development – Oregon State Office.

For more information, contact Roberto Franco at 503.986.6732 or Roberto.Franco@state.or.us.

Housing Council sets priorities and considers applications for funding
The Oregon State Housing Council has a lofty charge: “to develop policies to aid in stimulating and increasing the supply of housing for persons and families of lower income.” (Oregon Revised Statutes 456.571) The Council plays a significant role advising the department and financing affordable housing development. The members bring diverse perspectives and knowledge to the table – and we want to maximize their impact and influence.

Yesterday, members of the Housing Council met to set some goals for the next two years. The group was very engaged and thoughtful about how it could help people across the state have housing and services that meet their needs. In the coming weeks, we will share the council’s priorities and action plan in this message.

Next week, the Housing Council will consider more than a dozen requests for multi-family developments. The council meets Friday, Nov. 6, 2009, at 9 a.m., in room 124 of the North Mall Office Building, 725 Summer St. NE, in Salem.

Staff departure
Floyd Smith, senior communication advisor, has retired. During his time at OHCS, he worked hard to enhance media coverage of the department’s affordable housing and anti-poverty programs. We wish him well on the ski slopes.

It ain’t over ‘til it’s over.
~NY Yankee legend, Yogi Berra.

Victor Merced, Director
Phone 503.986.2005
Email: victor.merced@hcs.state.or.us
www.ohcs.oregon.gov

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